Why do you think a mining asset which provides a fixed hash rate would "skyrocket" with a small difficulty increase? Any difficulty increase at all means less income from the asset, therefore it's value decreases. That's just simple logic. If the share price increased due to a decrease in value, then that just proves my point that there are a lot of stupid people throwing money at stuff without doing the maths or any research. Logically, a decrease in value should result in a corresponding decrease in share price.
Right now, 200mhs at 0.4 gets you 200+% interest per year. If difficulty increased only by 5-10% per month, that would mean that in a year, the profit would still be in the 100-150% per year range.
Microsoft currently stands at around 3% per year. NASDAQ composite stands at somewhere between 4-7% per year. Something paying 25 times that would skyrocket over night.
You're forgetting that the market has already priced in the upcoming difficulty changes. Because of the fear that this will go on perpetually, the prices drop like rocks. However, if that doesn't happen (and there are already signs it may slow down when you see the skepticism about any mining investments these days) then profitability for these assets will be so high that they comparable prices would go through the roof. Megabigpower is struggling to sell out their 400 available October 400gh/s miners, and even if they sold all those today and had them in operation tomorrow, accounting for 100th, that would only keep the momentum of the current growth up for another month.
If difficulty completely stoppped today, any currently available mining asset that would survive more than 3 years would probably rise to 10-15 times its current price overnight. You'd still get your money back and beat most Wall Street investment funds by 200%.
If you need evidence of this, look at ASICMiner, where the market expects them to maintain their relative hash power for a long time. Right now, the market is paying 10x per hash of what they are paying for fixed-rate assets like 100TH, TAT.VM, and BFMines (ASICMiner now costs just over 10BTC for 200mhs). The market has no fear of difficulty increases becaus ASICMiner can grow. However, if difficulty stopped rising, the effect would be the same as if they rose perpetually because they would maintain, like ASICMiner is expected, their relative hash rate.
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Your an idiot. Your maths is wrong and so are your reasons. For starters 5-10% per month is far to low. The supplier your getting hardware from for BFmines is going to produce at least the 100th required for this before your measly 120ghs. So already thats a 35% increase or decrease of BFmines profitability, before you even get your hardware. And also if we where to use your false figures of 10% per month, the first month is 10% of the base number but months after this it would no longer be a straight line calc. 2nd month it would be 11% of base month. 3rd would be 12.1% ect. Ect. But a true figure would be more along the lines of 30%+ per month for at least 6months.
But even then based on your figures of 10% per month profitability of BFmines will be at 50% before november to what they could be now (if you where hashing) then in a year based on your stupid figures would be 25% of what they are now.
Onto the next stupid statment that only a 10year old could come up with. Comparing BFmines to Microsoft, for this to be true BFmines would need to spend money on research and development, but you don't, you will never increase the rate you are trying to sell now. Or on the otherside it would be like Microsoft only selling windows 95 now, and will continue only to ever sell windows 95.
As for your dumb comparison with BFmines to AM, people are willing to pay more as they offer development and profits from sales, yeah you get 30% pa but thats due to market share. You say on one hand global hash rate will only increase 10% per month but on the other you say AM wont be able to keep up with the increasr in hash rate. So which is it? Will AM not be able to keep pace ehich would put BFmines value to 0 or is it hash rate will not increase by much?
Take a look at what's on order atm, knc 500th bfl about the same, 100 of thousands of avalon chips, Activemining gear, AM blades Bitfury and all the others.
even if these companies cant get the orders ready by end of the year and only if bitfury is the only one that delivers anything in the next 6 months, BFmines will be at least 50% less profitable, BFmines will never make your investors money back, I am willing to bet that, they will never gain more in dividends before you close up due to non-profitability.
